Reddit (NYSE:RDDT) Stock Price Down 4.4% on Insider Selling

Shares of Reddit Inc. (NYSE:RDDT) dropped 4.4% during trading on Wednesday after an insider sold shares in the company. The stock traded as low as $214.40 and last traded at $215.3530. Approximately 923,015 shares traded hands during mid-day trading, a decline of 78% from the average daily volume of 4,249,428 shares. The stock had previously closed at $225.36.

Specifically, CEO Steve Ladd Huffman sold 18,000 shares of the firm’s stock in a transaction on Thursday, January 15th. The stock was sold at an average price of $232.78, for a total transaction of $4,190,040.00. Following the completion of the sale, the chief executive officer owned 448,576 shares of the company’s stock, valued at $104,419,521.28. This trade represents a 3.86% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website.

Wall Street Analysts Forecast Growth

RDDT has been the subject of a number of research analyst reports. JMP Securities reiterated a “market outperform” rating and set a $300.00 price target on shares of Reddit in a report on Friday, October 3rd. Morgan Stanley upped their target price on shares of Reddit from $250.00 to $265.00 and gave the company an “overweight” rating in a research report on Tuesday, January 13th. Royal Bank Of Canada reiterated a “sector perform” rating on shares of Reddit in a research report on Wednesday, October 1st. Robert W. Baird boosted their price target on shares of Reddit from $177.00 to $240.00 and gave the company a “neutral” rating in a research note on Thursday, September 25th. Finally, Argus set a $300.00 price objective on shares of Reddit in a research report on Friday, January 9th. Two investment analysts have rated the stock with a Strong Buy rating, sixteen have issued a Buy rating, eleven have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average target price of $244.11.

Reddit Price Performance

The firm has a market cap of $40.73 billion, a PE ratio of 123.54, a price-to-earnings-growth ratio of 1.41 and a beta of 2.17. The company’s 50 day moving average price is $224.95 and its 200 day moving average price is $212.09.

Reddit (NYSE:RDDT) last released its earnings results on Thursday, October 30th. The company reported $0.80 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.50 by $0.30. The company had revenue of $584.91 million for the quarter, compared to analyst estimates of $546.65 million. Reddit had a net margin of 18.33% and a return on equity of 14.94%. The firm’s quarterly revenue was up 67.9% on a year-over-year basis. During the same period in the prior year, the business earned $0.16 EPS. Sell-side analysts expect that Reddit Inc. will post 1.12 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. Whitaker Myers Wealth Managers LTD. increased its holdings in Reddit by 70.8% during the 4th quarter. Whitaker Myers Wealth Managers LTD. now owns 7,211 shares of the company’s stock worth $1,658,000 after purchasing an additional 2,988 shares during the period. Personal CFO Solutions LLC acquired a new position in shares of Reddit during the fourth quarter worth about $218,000. Stone House Investment Management LLC increased its stake in shares of Reddit by 66.7% during the fourth quarter. Stone House Investment Management LLC now owns 250 shares of the company’s stock worth $57,000 after buying an additional 100 shares during the period. Yousif Capital Management LLC increased its stake in shares of Reddit by 5.1% during the fourth quarter. Yousif Capital Management LLC now owns 1,554 shares of the company’s stock worth $350,000 after buying an additional 75 shares during the period. Finally, Greenleaf Trust acquired a new stake in Reddit in the fourth quarter valued at approximately $254,000.

Reddit Company Profile

Reddit is an online social news aggregation, discussion and content-sharing platform organized around user-created communities called “subreddits,” each focused on a particular topic or interest. Registered users submit links, text posts, images and video, and community members vote and comment to surface popular content. The site is accessed via its web platform and mobile apps for iOS and Android, and it supports live events such as Ask Me Anything (AMA) sessions and community-driven discussions.

Founded in 2005 by Steve Huffman and Alexis Ohanian, Reddit is headquartered in San Francisco and serves a global audience with particularly large user bases in the United States and other English-speaking markets.